Wine retailer Oddbins suffered a pre-tax loss of £8.6 million in the year to December 31.
Sales fell to£121.3 million, a dip from£121.8 million reported for the previous year.
Oddbins directors said they had “earmarked a significant number of unprofitable stores for disposal in 2007.” The directors’ report said the company had implemented cost efficiencies and restructured its working capital.
Last month, Oddbins lost its head buyer, Emma Nichols, in a shake up of its UK buying department.
Oddbins was bought by French wine giant Castel Frères in 2001 for£57 million.